Nordea AM targets later part of cycle with infrastructure strategy
Targeting investor concerns about how long the current economic cycle can continue, Nordea Asset Management has launched a global infrastructure strategy, as well as appointed a new manager for its existing global property fund.
The Nordea 1 - Global Listed Infrastructure fund is managed by CBRE Clarion Securities, and targets demand for new and existing
infrastructure. Nordea says that listed infrastructure "is a solid late-cycle alternative", with the asset classe providing "defensive and stable growth...anchored by dividend income...inflation-linked revenues and growth from reinvestment captial."
Global focus on sustainable development is also focusing investments in this area, it adds.
"Cash flows and dividends benefit from contractually driven, inflation-linked revenue growth, which may provide a long-term hedge
against inflation and rising interest rates," said Jeremy Anagnos (pictured right) of CBRE Clarion Securities, manager of the fund.
Property
In another change, Nordea AM has appointed Duff & Phelps Investment Management to run its Nordea 1 - Global Real Estate fund.
This invests in listed property, which is seen as another late-cycle opportunity.
"Listed real estate has both stock- and bond-like characteristics, so it is considered defensive relative to the broader stock market," said John Creswell (pictured left), executive managing director at Duff & Phelps Investment Management, and manager of the fund.
"Because real estate has evolved as an asset class, we have found that management and corporate governance is stronger than in previous cycles. A more sophisticated capital structure, lower debt levels and a closer focus on future supply mean that it should be able to better withstand a future economic downturn."
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